Answer the following Questions (Show Your Work)

1. A single taxpayer who makes $34,024 per year in gross employment income has a 17-year-old son who has a mental Infirmity (but is not eligible to claim the disability tax credit). He pays $3,219 per year for after-school childcare and $141 per week for 4 weeks of overnight summer camp.

What is the maximum child care expense that the taxpayer can deduct when calculating their net income for tax purposes?

2. During 2019, a capital property with an adjusted cost base of $156,277 is sold for $100,313. The proceeds of disposition are made up of $59,120 in cash, plus a purchaser's note for the unpaid amount of the proceeds of disposition. In 2020, the purchaser's note proves to be uncollectible.

What are the tax consequences of these events in 2020?

3. Interest earned in a tax-free savings account is taxable. True or False (explain)

4. During 2020 Ron received eligible dividends of $900 and non-eligible dividends of $600. His 2020 federal dividend tax credit is __________. (Show your work ) A) $249 B) $286 C) $187 D) $231